Can we file for voluntary dismissal if my husband and I are starting year 3 of a 5 year plan? 8 Answers as of February 29, 2016

We will end up paying 100% of our debts if we stick with the plan. Our monthly payment is $3100, which is really making it difficult anyway and now one of our vehicles has broken down and will cost around $3000 to repair. Both of our vehicles were included in the plan and both are completed in payoff according to the NDC website. We have $40000 in unsecured debt left in addition to $63,000 in student loans. I know that the student loan has been continuing to accrue interest and will still be out there at the end of the 5 years. We have paid in $73000 which has covered the vehicles and some of the unsecured debt. Would that make sense at this point? I don't know how we would come up with the money to pay for the repair otherwise.

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Ronald K. Nims LLC | Ronald K. Nims
I generally don't advise Chapter 13 clients to seek a voluntary dismissal unless they can't qualify for either a hardship discharge or a plan modification because you'll lose the protection of the bankruptcy court and won't be discharged of any of your debts. Including interest charges or unsecured principal on those two cars. A hardship discharge will immediately terminate all payments under the Chapter 13 and you'll receive a discharge from all your unsecured debt and get the cars free and clear. A plan modification will reduce your plan payments and the amount unsecured creditors receive.
Answer Applies to: Ohio
Replied: 2/29/2016
A Fresh Start
A Fresh Start | Dorothy G Bunce
Without looking at your actual total financial situation, which would likely take me a couple of hours, I cannot say whether you should take this drastic step. If you do not trust the judgment of your current attorney, I would spend some money for a second opinion.
Answer Applies to: Nevada
Replied: 2/29/2016
Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
You can file a motion to modify the plan to permit the repair. Attache a copy of the repair estimate to the motion. If I were your lawyer I filed it "ex parte" indicating it is an emergency.
Answer Applies to: California
Replied: 2/29/2016
Eranthe Law Firm
Eranthe Law Firm | Cate Eranthe
If you have an attorney speak to them. A plan can always be amended and its sounds like it's not feasible. If you don't have an attorney, go see a local knowledgeable bankruptcy attorney who can evaluate the situation and advise you. Reading your description raises too many questions in my mind to add much more. I would definitely get more advise before doing anything. You have paid so much into it you should really explore your options before taking any action or non-action. If you stop making the payments the case will get dismissed by motion of the Trustee. Have you looked at the Trustee's website to see where your payments have been allocated? Why are you in a 100% plan - because of your assets or income? Is there a lien strip involved? etc.
Answer Applies to: California
Replied: 2/29/2016
Goldsmith & Guymon
Goldsmith & Guymon | Marjorie Guymon
You always have the right to voluntarily dismiss your 13 at any time so long as it was not converted previously. Many of your creditors may have written off the debts at this point; however, without completing your plan you will not receive a discharge. You may be able to qualify for a hardship discharge. I recommend you consult with an attorney to go through your specific facts before deciding to dismiss.
Answer Applies to: Nevada
Replied: 2/29/2016
    Freeman Law Group, LLC
    Freeman Law Group, LLC | Derek Freeman
    Dismissing your bankruptcy should be your absolute last resort. If you've had a change in your circumstances, you may be able to modify your bankruptcy plan. I would try that first. You may be able to reduce your payments or lengthen the duration of the plan or both, which could provide you with the extra cash you need to repair your car. Dismissing a bankruptcy is usually a bad idea, but it might be the best bad idea available to you. You should explore other options first.
    Answer Applies to: Colorado
    Replied: 2/29/2016
    Charles Schneider, P.C.
    Charles Schneider, P.C. | Charles J. Schneider
    Probably not. You ought to see if the payment can be lowered.
    Answer Applies to: Michigan
    Replied: 2/29/2016
    The Law Office of M Grater LLC
    The Law Office of M Grater LLC | Mark O. Grater
    You can always move to dismiss a Chapter 13. In Connecticut there would be a 6 month bar to filing a follow-up chapter 13 if the mortgage company has moved for relief from stay prior to your request for dismissal.
    Answer Applies to: Connecticut
    Replied: 2/29/2016
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